The coaching team at Dragons have make six changes to the side that lost the opening game of the competition to Cardiff Blues A last week.
Loots comes in at centre, to partner captain Connor Edwards, while full back Carwyn Penny is also handed a start in the 15 jersey, with Will Talbot-Davies moving to the wing.
Scrum half Dafydd Buckland will now partner Jacob Botica at half back.
Second row Taylor is among three changes in the pack with prop Gerard Ellis and Number Eight Taine Basham, who scored against Cardiff Blues, also selected.
Calvin Wellington could get his first taste of Celtic Cup action this season after being named among the replacements.
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